Goldman Sachs Group exceeded market expectations for revenue and EPS in its latest results, while indicators for next year's outlook were revised upward. Market views remain divided after the results, but attention is focused on the long-term growth outlook.
Goldman Sachs Group reported revenue of US$19.0 billion and EPS of US$17.01 in its latest results, both above market expectations. Revenue was 11% above estimates, while EPS was 30% above estimates.
The consensus forecast from 21 analysts calls for 2027 revenue of US$73.7 billion and statutory earnings per share of US$74.03. Revenue was raised from the pre-earnings estimate of US$73.0 billion, while EPS was raised from US$72.49.
The consensus price target is US$1,037, with no significant change, and the improvement in the EPS outlook alone is considered likely to have a limited impact on the stock's long-term performance. The range of analysts' price targets has not widened, although there remains a gap between the most optimistic and most cautious views.
The growth outlook implies a 3.0% annualized growth rate through the end of 2027, below the 5.1% recorded over the past five years. Industry-wide revenue growth is expected to be approximately 5.5%, drawing relative attention to the company's slowing growth.